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You can kiss goodbye T1 ship manufacturing in high sec

First post
Author
Dinsdale Pirannha
Pirannha Corp
#1 - 2014-03-28 12:56:43 UTC
I hate giving any traffic to the failed lawyer's web site, but anyone who manufactures T1 ships for sale near Jita or other large hubs should go read what the architect of the huge refining efficiency buff for null sec posted on that site.

He breaks down, quite triumphantly, the massive advantage that null sec is now being gifted over high sec T1 manufacturing.
His words, 25-30 million ISK / battleship hull.

So any high sec T1 ship manufacturers who operate on razor thin margins, kiss goodbye that portion of the game.
Silvetica Dian
Imperial Shipment
Amarr Empire
#2 - 2014-03-28 13:05:50 UTC
I am sure all of us who manufacture in high sec are trembling behind our spreadsheets at the thought of the tens of null manufacturing making almost no impact on our local markets.
esp as ship building isn't where most profits lie.
In fact the only time my alt uses any minerals at all is when i build gilas /rattlesnakes from bpc i found in combat sigs.
Do you even manufacture?
Or you spend your time 100% on tinfoil?

PS my main (this char) lives in npc null and is not friendly with CFC so i will not gain from this change.

Money at its root is a form of rationing. When the richest 85 people have as much wealth as the poorest 3.5 billion (50% of humanity) it is clear where the source of poverty is. http://www.theguardian.com/commentisfree/2014/jan/20/trickle-down-economics-broken-promise-richest-85

Dinsdale Pirannha
Pirannha Corp
#3 - 2014-03-28 13:15:44 UTC
Silvetica Dian wrote:
I am sure all of us who manufacture in high sec are trembling behind our spreadsheets at the thought of the tens of null manufacturing making almost no impact on our local markets.
esp as ship building isn't where most profits lie.
In fact the only time my alt uses any minerals at all is when i build gilas /rattlesnakes from bpc i found in combat sigs.
Do you even manufacture?
Or you spend your time 100% on tinfoil?

PS my main (this char) lives in npc null and is not friendly with CFC so i will not gain from this change.


I have done mfg from Talos' and Tornado's, umpteen LP based faction items, T2 finished products, T2 intermediate products right through to carriers and dreadnoughts.
I ran my old corp's industrial wing when I lived in null sec.

So yeah, I know a thing or two about manufacturing.
And I know that high sec mfg is getting killed.
Kaea Astridsson
Hoplite Brigade
Ushra'Khan
#4 - 2014-03-28 13:35:29 UTC
If what you're saying is true, is this not a good thing? I for one think the risks involved in running an industrial venture out in null should have it's perks compared to the small risks taken by hi-sec industrials.

Haven't tried out in null but I've done some in hi-sec, and seeing I don't have any sov bills to pay in high, and my logistics is way cheaper being closer to hubs and my haulers not having to risk their ship out in lower security spaces. I'd say - why shouldn't they have the right to earn more isk?

If the isk is good enough it might even create more conflict and content. I'd for one would love seeing tycoons paying for muscle to claim a piece for themselves. That sort of stories is what got me into this game in the first place.

Get on Comms, or die typing.

350125GO
Sebiestor Tribe
Minmatar Republic
#5 - 2014-03-28 13:37:23 UTC
So you think the null sec manufacturers are going to flood the high sec markets with cheap battleships? LOL

Good manufacturers will find efficiencies to keep their margins. The market will rule over all.

You're young, you'll adjust. I'm old, I'll get used to it.

Zifrian
University of Caille
Gallente Federation
#6 - 2014-03-28 14:03:33 UTC
Sounds like someone who has never done null manufacturing has a poorly informed opinion.

The markets will adapt, people who don't like change will whine, CCP will continue on. Same as every other 'game breaking patch.'

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Batelle
Federal Navy Academy
#7 - 2014-03-28 14:20:34 UTC
Dinsdale Pirannha wrote:
So yeah, I know a thing or two about manufacturing.
And I know that high sec mfg is getting killed.


I'm sure you're just as clueless about mfg as you are about everything else. Ship hulls aren't going to be killed, because even with better margins they'll be a PITA to move. At worst you'll lose some nullsec customers. There are tons of other t1 items that will have the same material advantage (minerals only, not PI) but will be much easier to ship to hisec en masse to sell. I'm amused you've picked battleships to be the canary for hisec mfg.

Guess hisec guys will have to move more into invention, t2, and pi-based t1 mfg. Which isn't all that terrible. Besides, t1 mfg in hisec is about as easy as it can get, if you're going to do it in null then you should get some advantage.

"**CCP is changing policy, and has asked that we discontinue the bonus credit program after November 7th. So until then, enjoy a super-bonus of 1B Blink Credit for each 60-day GTC you buy!"**

Never forget.

Otto Von Kaat
University of Caille
Gallente Federation
#8 - 2014-03-28 14:34:48 UTC
I can't imagine the razor thin margins on a lot of t1 ship manufacturing will even be there after transportation costs are factored in.
Silvetica Dian
Imperial Shipment
Amarr Empire
#9 - 2014-03-28 14:44:14 UTC
Dinsdale Pirannha wrote:
Silvetica Dian wrote:
I am sure all of us who manufacture in high sec are trembling behind our spreadsheets at the thought of the tens of null manufacturing making almost no impact on our local markets.
esp as ship building isn't where most profits lie.
In fact the only time my alt uses any minerals at all is when i build gilas /rattlesnakes from bpc i found in combat sigs.
Do you even manufacture?
Or you spend your time 100% on tinfoil?

PS my main (this char) lives in npc null and is not friendly with CFC so i will not gain from this change.


I have done mfg from Talos' and Tornado's, umpteen LP based faction items, T2 finished products, T2 intermediate products right through to carriers and dreadnoughts.
I ran my old corp's industrial wing when I lived in null sec.

So yeah, I know a thing or two about manufacturing.
And I know that high sec mfg is getting killed.


and i know this will affect my high sec , virtually risk free isk printing from manufacturing not at all.
Sov holding should come with benefits and atm the high end player owned stations that will beat POS refining don't even exist.
Not one player in any alliance has EVER upgraded a station for refining to max level. This tells us that currently null manufacturing is severely broken and manufacturers are not welcome in most null alliances as they serve no purpose in null space.
A buff to these people is long overdue. Even after the buff and in the unlikely event of my alliance gaining sov from the people we are currently fighting (they outnumber us 8 to 1) i will most likely not move my manufacturing alt out to null but stay making easy isk in high sec.

Money at its root is a form of rationing. When the richest 85 people have as much wealth as the poorest 3.5 billion (50% of humanity) it is clear where the source of poverty is. http://www.theguardian.com/commentisfree/2014/jan/20/trickle-down-economics-broken-promise-richest-85

Gilbaron
The Scope
Gallente Federation
#10 - 2014-03-28 15:40:38 UTC
Great change :) can't wait to finally move my alts out of anonymity :)
Lucas Kell
Solitude Trading
S.N.O.T.
#11 - 2014-03-28 15:46:48 UTC
Dinsdale Pirannha wrote:
I have done mfg from Talos' and Tornado's, umpteen LP based faction items, T2 finished products, T2 intermediate products right through to carriers and dreadnoughts.
I ran my old corp's industrial wing when I lived in null sec.

So yeah, I know a thing or two about manufacturing.
And I know that high sec mfg is getting killed.
But clearly you don't know anything about manufacturing or you'd realise how incredibly wrong your post is.

Either you know jack **** and you are stating an incorrect conclusion though lack of knowledge, or you know a lot and are stating an incorrect conclusion through your bias against null.

The Indecisive Noob - EVE fan blog.

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Gilbaron
The Scope
Gallente Federation
#12 - 2014-03-28 17:13:17 UTC
Otto Von Kaat wrote:
I can't imagine the razor thin margins on a lot of t1 ship manufacturing will even be there after transportation costs are factored in.


it's not about the margin, it's about the ~10% "free" minerals you get in a 00 station :)
admiral root
Red Galaxy
#13 - 2014-03-28 17:44:14 UTC
Sky is falling, damage estimate to follow.

No, your rights end in optimal+2*falloff

Shoogie
Serious Pixels
#14 - 2014-03-28 19:35:08 UTC
Gilbaron wrote:
Otto Von Kaat wrote:
I can't imagine the razor thin margins on a lot of t1 ship manufacturing will even be there after transportation costs are factored in.


it's not about the margin, it's about the ~10% "free" minerals you get in a 00 station :)


Yes, the 00 station gets 10% free minerals. But they have extra costs too. Fuel cost to jump the ore from high sec to that 00 station. Fuel cost to jump the battleships back to high sec. Transportation time from wherever on the edge of high sec the jump freighter landed to Jita. A packaged battleship is 50k m3. So you can only fit 6 or 7 per trip in a jump freighter.

Sure, the 00 manufacturer can theoretically undercut a high sec producer, but with such low isk/hr, who will bother?
Tau Cabalander
Retirement Retreat
Working Stiffs
#15 - 2014-03-28 19:39:44 UTC  |  Edited by: Tau Cabalander
Dear Chicken Little,

Since the dev blog posting, demand for the items I manufacture has increased. This makes me very happy.

Heck, even the demand for 425mm railguns has gone up, as manufacturers rush to get builds in before the summer expansion.

After the summer, I'll still be here building something. No idea what that will be yet, but that is nothing new, as market demand continually changes.

"Change is the only constant." -- Heraclitus of Ephesus


EDIT: And building ships was already a bad idea.
Dinsdale Pirannha
Pirannha Corp
#16 - 2014-03-28 20:55:51 UTC  |  Edited by: Dinsdale Pirannha
Shoogie wrote:
Gilbaron wrote:
Otto Von Kaat wrote:
I can't imagine the razor thin margins on a lot of t1 ship manufacturing will even be there after transportation costs are factored in.


it's not about the margin, it's about the ~10% "free" minerals you get in a 00 station :)


Yes, the 00 station gets 10% free minerals. But they have extra costs too. Fuel cost to jump the ore from high sec to that 00 station. Fuel cost to jump the battleships back to high sec. Transportation time from wherever on the edge of high sec the jump freighter landed to Jita. A packaged battleship is 50k m3. So you can only fit 6 or 7 per trip in a jump freighter.

Sure, the 00 manufacturer can theoretically undercut a high sec producer, but with such low isk/hr, who will bother?


Actually, according the to the chief architect, it is more like 17% more minerals for null sec.
And I would suggest that margin makes it very very lucrative to wipe out high sec manufacturers.

Like I posted , gross profits on moving 7 BS's to high sec is 175-210 M. That is from the goon's own blog post.
Net profits, what, 120-180 million ISK/ round trip?

Looking at my Megathron BPO, which has pretty terrible stats of 3 PE, and with this char, who has less than perfect mfg skills, the base time is 3 hours, 24 minutes cooking time.

So even under worst case, a null sec indy can easily do a round trip every day.
Time spent, likely an hour. But call it 90 minutes.
That puts profits on that single run at 133-200 M/ hour.

Now, I know in the null sec world, most players don't even get out of bed for that.
But in high sec, they do.

The ONLY way that high sec mfg is not wrecked is if the null sec manufacturers can find other production lines that are more lucrative than that, like capital manufacturing , which ruins the niche market of some low sec cap manufacturers.

Edit...sorry, not gross profits. They are higher than that. That 175-210 M is how much less the mineral cost is for a null sec manufacturer for 7 Battleship hulls compared to a high sec manufacturer.
Dave Stark
#17 - 2014-03-28 21:02:18 UTC
Dinsdale Pirannha wrote:
I hate giving any traffic to the failed lawyer's web site, but anyone who manufactures T1 ships for sale near Jita or other large hubs should go read what the architect of the huge refining efficiency buff for null sec posted on that site.

He breaks down, quite triumphantly, the massive advantage that null sec is now being gifted over high sec T1 manufacturing.
His words, 25-30 million ISK / battleship hull.

So any high sec T1 ship manufacturers who operate on razor thin margins, kiss goodbye that portion of the game.


show me the math that allows transport costs to be less than 30m per hull, please.
Dinsdale Pirannha
Pirannha Corp
#18 - 2014-03-28 21:09:21 UTC
Dave Stark wrote:
Dinsdale Pirannha wrote:
I hate giving any traffic to the failed lawyer's web site, but anyone who manufactures T1 ships for sale near Jita or other large hubs should go read what the architect of the huge refining efficiency buff for null sec posted on that site.

He breaks down, quite triumphantly, the massive advantage that null sec is now being gifted over high sec T1 manufacturing.
His words, 25-30 million ISK / battleship hull.

So any high sec T1 ship manufacturers who operate on razor thin margins, kiss goodbye that portion of the game.


show me the math that allows transport costs to be less than 30m per hull, please.


You are serious?
If you have to ask that question, you really don't have a clue.

Why don't YOU show me how you get over 30M/ hull.
Lambert Simnel
PWLS Enterprises
#19 - 2014-03-28 21:11:51 UTC
How many T1 battleships can you fit in a jump freighter? What you could do is find a way to compress all the minerals you mine in null and jump them into high sec to totally undercut the market.

Oh wait....

Take it from someone who used to build railguns for a living. You should feel bad for solo low sec capital manufacturers and newbies who reprocess loot. No one else should have a real problem with the changes.
Dave Stark
#20 - 2014-03-28 21:43:31 UTC
Dinsdale Pirannha wrote:
Dave Stark wrote:
Dinsdale Pirannha wrote:
I hate giving any traffic to the failed lawyer's web site, but anyone who manufactures T1 ships for sale near Jita or other large hubs should go read what the architect of the huge refining efficiency buff for null sec posted on that site.

He breaks down, quite triumphantly, the massive advantage that null sec is now being gifted over high sec T1 manufacturing.
His words, 25-30 million ISK / battleship hull.

So any high sec T1 ship manufacturers who operate on razor thin margins, kiss goodbye that portion of the game.


show me the math that allows transport costs to be less than 30m per hull, please.


You are serious?
If you have to ask that question, you really don't have a clue.

Why don't YOU show me how you get over 30M/ hull.


i have to ask that question, because you provided 0 evidence of it, which is basically the only thing that substantiates such an outlandish claim such as yours.

so either answer it, or stop spewing incorrect crap all over the forums.
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